Impact of oil prices on stock return: evidence from G7 countries

Abstract

The aim of the study is to investigate the impact of oil prices on the stock market of G7 countries. Oil prices not only affect the economy of a country but also the country's stock market. The stock market affects the stock valuation or, to put in another way, the company's stock value. The stock value is associated with the discounted sum of predictable future cash flows and these flows may be distressed by macroeconomic variables including oil prices fluctuations. This study has researched the impact of oil prices' fluctuation on countries included G7, i.e. Reference to this paper should be made as follows: Masood, O.; Tvaronavičienė, M.; Javaria, K. 2019. Impact of oil prices on stock return: evidence from G7 countries, Insights into Regional Development 1(2): 129-137. https://doi.org/10.9770/ird.2019.1.2(4)